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How Europe s biggest banks plan to challenge US dominance in digital payments

SHARE European banks and credit card processors are working to establish a new pan-European payment network to challenge the dominance of the US payments companies Mastercard and Visa and head off the threat from technology giants such as PayPal, Google and Apple. The Brussels-based project, called the European Payments Initiative, began in July and is expected to go to market in the EU next year. Thus far, it has received funding of more than $36 million from sponsors. Its backers include 31 European banks and credit institutions such as Deutsche Bank, UniCredit, BNP Paribas, ING, Societe Generale, Santander and Sabadell. It also has the backing of the European Commission as well as various financial regulators in the bloc.

Giesecke+Devrient (G+D) Welcomes The European Payments Initiative (EPI) As A Long Overdue Step Towards Establishing A Sovereign Pan-European Payment System And An Urgently Needed Alternative To The Dominant Global Payment Providers

Giesecke+Devrient (G+D) Welcomes The European Payments Initiative (EPI) As A Long Overdue Step Towards Establishing A Sovereign Pan-European Payment System And An Urgently Needed Alternative To The Dominant Global Payment Providers Date 04/05/2021 The time has come for a sovereign European payment scheme. So far, Europeans have been dependent on dominant global payment service providers for cashless and digital payments, e.g. for online shopping. But that is about to change. The European Payments Initiative EPI plans to introduce a payment system including cards and a mobile wallet app which can be used for everyday situations, such as paying in stores or online, as well as person-to-person (P2P) money transfers. This would allow European citizens to withdraw cash throughout Europe and make cashless payments with their cards or via the app at POS terminals – all under the umbrella of strict European security standards, because their data stays in Europe. This ensures indepe

Move forward on instant payments, Central Bank tells banks

  Irish banks should “move forward” on instant payments, while consumers’ shift to electronic means of paying is “unlikely to be fully reversed” after the pandemic, Central Bank deputy governor Sharon Donnery told a webinar on Wednesday. Ms Donnery cited survey evidence from 17 EU countries that suggests the majority of consumers expect to continue to use digital services as often as they do now, “or perhaps even more”. However, cash is likely to continue to be the most common way of making small retail payments, she said. “It is important in our role as central banks that we continue to ensure choice and the availability of cash. Not all members of the public will want to use electronic means of payment owing to their habits, or a preference for anonymity and privacy,” Ms Donnery said.

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